Multiple choice

Calculate interest on drawings of partner Madhav, if he draws Rs. 4500 at the begining of each quarter and the rate of interest on drawings is equal to the rate of interest on loan. Rate of interest on loan is the same, which should be allowed in the absence of partnership deed.

  1. Rs. 675

  2. Rs. 1350

  3. Rs. 540

  4. Rs. 168.75
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Amount of drawings = (P) = 4500 * 4 = Rs. 18000, R = 6% as interest on loan is also allowed 6%, Time = 7.5 months, if drawings are made at the begining of each quarter. Thus, correct answer is 18000 * 6% * 7.5/12 = Rs. 675.

Keep practicing — related questions